Mortgage rates exceeded 7% for the first time since May 2022, with 30-year fixed rates reaching 7.12% the week of September 18, driven by elevated Treasury yields amid inflation concerns. Higher borrowing costs are straining housing affordability as buyers increasingly turn to riskier adjustable-rate mortgages offering lower initial rates.
Young Europeans are increasingly unable to afford homeownership compared to previous generations, with rates declining across most EU countries due to rising house prices, higher borrowing costs, and stagnant wage growth. OECD data shows homeownership among 30-year-olds dropped significantly since the mid-1990s, with Ireland experiencing the steepest decline from 81% to 53%.
A new Committee for a Responsible Federal Budget report argues that reducing the U.S. national debt could boost household income by $36,000 over three decades and help combat inflation by lowering interest rates. The analysis suggests deficit reduction would ease pressure on the Federal Reserve's inflation-fighting efforts and reduce crowding out of private investment, addressing voter concerns about affordability and cost of living.
A newsletter discusses how cities can enable fine-grained urban development through regulatory and financing reforms. Recent progress includes parking minimums elimination, simplified building codes for small apartment buildings, and new lending frameworks, all supporting courtyard urbanism and mixed-density neighborhoods that serve families and local economies.
A growing share of U.S. renters, including middle-income families, struggle to pay rent each month, with 20% of middle-income renters unable to afford full rent in 2025 compared to 14% the prior year. Rising housing costs combined with other economic pressures are forcing families to choose between basic necessities and rent payments, raising concerns about increased evictions and homelessness.
Mortgage rates have soared to 7.2%, their highest in 18 months, while home prices remain near record highs, making homeownership increasingly unaffordable for Americans. Rising Treasury yields driven by geopolitical tensions and oil prices, combined with Federal Reserve rate hikes to combat inflation, are expected to push rates even higher. The median first-time homebuyer is now 40 years old, and many young adults are delaying purchases or moving back with parents.